How to Invest in Commodities

Topics

When planning your investments in the oil commodity market, another pair of numbers to keep close tabs on is export and import figures. Exports are different from production: A country can produce a lot[more…]

The Organization of Petroleum Exporting Countries (OPEC) is made up of countries that are involved in the production and export of crude oil commodities around the world. Currently, OPEC has 11 member[more…]

Crude oil by itself isn’t very useful; it derives its value as a commodity from its products. Only after it’s processed and refined into consumable products such as gasoline, propane, and jet fuel does[more…]

The price of crude oil as a commodity skyrocketed during the first decade of the 21st century. If this period is any indication of what’s in store for oil, you definitely want to develop a winning game[more…]

Oil companies get a bad rap. Whatever you may think of them, they make for a great investment in commodities. Oil companies are responsible for bringing precious energy products to consumers, and for this[more…]

Most oil companies have added non-petroleum energy sources to their product research mix, providing exposure to energy commodities of all kinds. These companies not only process crude oil into different[more…]

If you can’t decide which oil company you want to invest in when you’re entering commodity investing, you have several other options that allow you to buy the market, so to speak. One option is to buy[more…]

Another great way to capitalize on oil profits is to invest in an emerging market fund that invests in commodities in countries that both sit on large deposits of crude oil and have the infrastructure[more…]

Exchange Traded Funds (ETFs) are now in a position to offer easy access to commodities. With ETFs, you can now access investment products that were once the purview of expert industry insiders and professional[more…]

Because ETFs are now in a position to offer easy access to commodities, and because the number and type of commodities they cover has expanded, you can benefit from seeing which ETFs are out there to help[more…]

With Exchange Traded Funds (ETFs), you can now access investment products that were once the purview of expert industry insiders and professional commodity traders. ETFs offer easy access to commodities[more…]

A common misconception among investors is that you can only trade commodities by opening a futures account. While the futures markets certainly provide an avenue into the commodities markets, you have[more…]

Another route you can take to get exposure to commodities is to buy stocks of commodity companies. These companies are generally involved in the production, transformation, or distribution of various commodities[more…]

A commodity index tracks the price of a futures contract of an underlying physical commodity on a designated exchange. When you invest through one of the commodity indexes, you’re actually investing in[more…]

The S&P Goldman Sachs Commodity Index (S&P GSCI) is one of the most closely watched indexes in the market. Launched in 1992 by the investment bank Goldman Sachs, it tracks the performance of 24 commodity[more…]

Created in 1957 as the Commodity Research Bureau’s official commodity-tracking index, this index is the oldest commodity index in the world. The original index received its most recent makeover in 2005[more…]

With approximately $31 billion tracking it (2010 figures), the Dow Jones–AIG Commodity Index (DJ-AIGCI) is one of the most widely followed indexes in the market. The DJ-AIGCI places a premium on liquidity[more…]

With a grand total of 35 listed commodities, the Rogers International Commodities Index (RICI) tracks the most commodities among the different indexes. The RICI is the brainchild of famed commodities investor[more…]

Launched in 2003 by Deutsche Bank, the Deutsche Bank Liquid Commodity Index (DBLCI) is the new kid on the index block and has the most distinct approach to tracking commodity futures contracts. The DBLCI[more…]

With so many commodities indexes to choose from, how do you decide which one to follow? Generally, the S&P Goldman Sachs Commodity Index (S&P GSCI) is the most tracked index in the market — it has the[more…]